Summit Partners Announces Closing of Private Equity and Venture Capital Funds, Totaling $3.3 Billion
Business Editors
PALO ALTO, Calif., BOSTON and LONDON--(BUSINESS WIRE)--June 27, 2005--
Nearly $9 Billion Raised Since Inception
Summit Partners announced today that it has closed two new private funds, a private equity fund and a venture capital fund, totaling $3.3 billion. The funds will be used to invest in growing, profitable, privately held later-stage companies in North America and Europe in a broad range of industries.
Formed in 1984, Summit Partners has provided growth equity, recapitalization, and leveraged buyout financing to 270 companies, which have completed more than 100 public offerings and in excess of 100 strategic mergers or sales. The new $3.0 billion Summit Partners Private Equity Fund VII will make investments from $25 million to $450 million per company.
The new $300 million Summit Partners Venture Capital Fund II will make investments from $5 million to $25 million per company.
Since its inception, Summit has raised 12 private funds: seven private equity funds, two venture capital funds, and three subordinated debt funds with combined capital of nearly $9 billion.
The new private equity and venture capital funds will be used to acquire minority or majority positions in successful companies across a broad range of emerging growth industries, including technology, healthcare, business and financial services, and consumer and industrial products. Entrepreneurs and management teams will use the capital to finance growth, shareholder liquidity, recapitalizations, and management buyouts.
Marty Mannion, a managing partner in Summit's Boston office who coordinated the firm's fundraising activities with Summit managing partner Joe Trustey, said, "We appreciate the commitment we have received from both existing and new investors across North America, Europe, and Asia. With their continued support, we were able to complete our fundraising activities in a short period of time. We see this as a confirmation of the high-quality companies with which we have been fortunate to associate over the past 21 years."
Scott Collins, a general partner who manages Summit's London office, added, "Summit is the leader in providing equity financing to profitable growth companies, and we see continued opportunity to partner with successful entrepreneurs and managers across Europe. With the completion of our fundraising efforts, we intend to further expand our European investment activities."
The investors in Summit's new private equity and venture capital funds include public and private pension funds, university endowments, financial institutions, corporations, and previously financed Summit Partners' entrepreneurs. More than 85 percent of the capital raised in these funds was provided by investors in previous Summit funds.
The private equity and venture capital funds will be invested by Summit's team of 60 investment professionals throughout its Boston, Palo Alto, and London offices. By combining its equity and subordinated debt funds, Summit Partners can invest in excess of $500 million per company.
Summit Partners seeks outstanding management teams that have self-financed their companies to profitability and market leadership in a broad range of emerging growth industries. Notable companies financed by Summit Partners include E-TEK Dynamics, iPayment, Keystone RV Company, Lincare, McAfee, optionsXpress, Pediatrix Medical Group, and RightNow Technologies, and in Europe, B&W Loudspeakers, and Jamba!. For more information, please visit www.summitpartners.com.
The business of Summit Partners in the UK is regulated by the Financial Services Authority. In the U.S., Summit Partners operates as an SEC registered investment adviser. This document is intended solely to provide information regarding Summit Partners' potential financing capabilities for prospective portfolio companies, and is not a recommendation of an investment in any company.
CONTACT:
For Summit Partners in U.K. and Europe:
River Rouge Communications
Mitchell Prather, +44 (0) 20 7354 7307
or
For Summit Partners in North America
Warner Communications
Dawn Ringel, 781-449-8456